GBP to AUD rates: Following a solid rise for the Pound against all major currencies and a brief appearance above 1.80 against the Australian Dollar last week, the Pound has been creeping back down in value against all major currencies.
This has mainly been down to Brexit uncertainty and the worry that, despite showing backbone and making trips back over to Brussels to iron out the final creases in her Brexit deal, Prime Minister Theresa May is still going to struggle to get the backing that she needs.
On top of this there are still many ministers that are waiting in the shadows. We have had roughly 30 ministers submit letters towards a vote of no confidence and should another 18 decide to take action then you really could see problems for Theresa May and the Pound too.
It would take 48 letters in total to submit an official vote of no confidence and this would lead to Theresa may facing a leadership challenge, should the Conservative Party then fail to agree on a new leader then we could even find ourselves getting as far as a General Election.
With all of this in mind you would expect that there is little likelihood of the Pound hitting 1.80 against the Australian Dollar in the near term. The counter argument to this however, is that should Theresa May manage to negotiate these extremely choppy political waters and the EU summit lead to a positive result this weekend then the Pound may well soar. This would be the best chance of GBP to AUD exchange rates heading up and through 1.80 but we need to be very wary that there are a lot of hurdles to overcome before Prime Minister May has a positive outcome.
GBP to AUD rates: Australian Dollar news
We are fairly light in terms of economic data due out for Australia in the next week or so, which can be fairly common as you head towards the end of a calendar month.
What will be key is any further progression on the trade wars between the US and China. All eyes will be on Presidents Trump and Xi as they plan to meet during the G20 summit in Buenos Aires at the end of November. A positive outcome for this may lead to strength for the Australian Dollar but further tensions may lead to Australian Dollar weakness.
Personally I would not be surprised to see a more positive outcome from the face to face talks. Trump tends to relate well with opposition in face to face meetings and then can go for the jugular once he gets back and logs onto his famous Twitter account.
GBP to AUD Forecast
With all of the above taken into account it does show that this is an extremely tricky currency pairing to predict, there are so many political issues and most of these are being discussed behind closed doors. If I had to make an honest prediction as to where I feel GBP to AUD rates may head then I can see a period of further weakness towards the lower 1.70 levels unless we see some absolutely brilliant progression and positive news on Brexit, at present that doesn’t look so likely.
If you have the need to buy or sell Pounds or Australian Dollars and you would like my assistance then I would be more than happy to help you. Not only do we offer market leading exchange rates but we pride ourselves on the very best levels of customer service too. Feel free to fill in the form below to contact me directly and I will be happy to get in touch for a no obligation chat about your personal situation.